XSMO Dividend Type Payments
Although XSMO has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Invesco S&P SmallCap Momentum ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 4:16 PM ET):
| Invesco S&P SmallCap Momentum ETF (XSMO) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 72.43 | 73.80 | 72.68 | -1.02 | 202K | - | 0.1B |
XSMO Dividend-Like Income Using Covered Calls
With XSMO at 72.68, here's a table showing how big the annual "dividend" (i.e. total annual call premium received) would need to be to attain 3%, 5%, and 10% annual yields. Also shown is the equivalent number of cents/day necessary to achieve each yield:
| Annual Yield | Annual Premium | Cents/Day |
|---|---|---|
| 3% | 2.18 | 0.6 |
| 5% | 3.63 | 1.0 |
| 10% | 7.27 | 2.0 |
So now we need to find out of the money covered calls that pay at least the prescribed cents/day amount of time premium. That will generate income and, because they are out of the money, leave room for some upside potential on the stock. Here are some examples:
| 3% Yield On XSMO Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Apr 17 | 74.00 | 0.90 | 138 | 0.7 | 0.20 (0.3%) | |
| Jul 17 | 74.00 | 2.20 | 229 | 1.0 | 0.20 (0.3%) | |
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| Top 10 Open Interest For Dec 19 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | EEM dividend | 1. | JANX dividend | |
| 2. | SPY dividend | 7. | GLD dividend | 2. | RZLT dividend | |
| 3. | IWM dividend | 8. | SLV dividend | 3. | IMNM dividend | |
| 4. | QQQ dividend | 9. | TLT dividend | 4. | PATH dividend | |
| 5. | IBIT dividend | 10. | FXI dividend | 5. | HUT dividend | |
Want more examples? XSLV Dividend | XSOE Dividend
